Malcy's Oil Report - RDSA, BG, PPC

Monday, Sep 14 2015 by
4
Malcys Oil Report  RDSA BG PPC

WTI $44.63 -$1.29, Brent $48.14 -75c, Diff $3.51 +55c, NG $2.69 +1c

Oil price

So much data to analyse and for the first time for a while the agencies are beginning to differ in their reading of the oil supply and demand situation. The EIA is markedly less optimistic than the IEA with regard to the balance, as the latter suggests that non-Opec supply will fall by a short 1/2m b/d and demand numbers are up by 1.7m b/d this year and 1.4m next. I know who I would normally believe out of those two and as longer term readers will know its not the IEA. The third agency reports today and it will be a surprise if Opec are far away from the EIA but let's wait and see.

The rig count continues to help, minus 16 at 848 overall on Friday and oil down 10 at 653 was 56% down y/y and there are enough rumblings about US production falling to at least bear that in mind. Worth another peek at the interview Rex Tillerson did with PIW recently and also that the autumn refinancing’s may not be so cosy as those in the spring…

It's all about the Fed this week and although the chance of a raise have fallen from 50% to 30% some are still saying get the rise out of the way the sooner the better. However, those of us without the enormous brain of an economist must be listening to the IMF and the World Bank saying that the world is teetering on the edge of another major setback and thinking that raising rates isn't the normal bedfellow of catastrophe, mind you if Johnny Sutton and Marcus Ashworth agree something must be amiss…..

If you watched BBC’s Countryfile last night you would have seen something very rare, no not a rural Corbyn but a relatively and refreshingly unbiased piece about fraccing. Half way through I was expecting a homage to the antis but we then got John Blaymires of IGas giving the other side which was quite refreshing and well done by him.

Shell / BG

Interviewed in the FT this morning albeit too briefly, BvB has stated not for the first time that the risks of the BG deal not completing are ‘exaggerated’ and that the two share prices had been ‘knocked about’ by market turbulence. On the dividend he maintained his commitment but also…

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The Royal Dutch Shell plc explores for crude oil and natural gas around the world, both in conventional fields and from sources, such as tight rock, shale and coal formations. The Company's segments include Integrated Gas, Upstream, Downstream and Corporate. The Integrated Gas segment is engaged in the liquefaction and transportation of gas and the conversion of natural gas to liquids to provide fuels and other products, as well as projects with an integrated activity, ranging from producing to commercializing gas. The Upstream segment includes the operations of Upstream, which is engaged in the exploration for and extraction of crude oil, natural gas and natural gas liquids, and the marketing and transportation of oil and gas, and Oil Sands, which is engaged in the extraction of bitumen from mined oil sands and conversion into synthetic crude oil. The Downstream segment is engaged in oil products and chemicals manufacturing, and marketing activities. more »

LSE Price
2337.5p
Change
0.3%
Mkt Cap (£m)
193,331
P/E (fwd)
15.1
Yield (fwd)
5.9

BG Group Limited, formerly BG Group plc, is a United Kingdom-based natural gas company. The Company has a portfolio of business interests focused on gas and oil exploration and production and on liquefied natural gas (LNG). It has two business segments: Upstream, which includes exploration and production and liquefaction, and LNG Shipping & Marketing, which combines the development and use of LNG import facilities with the purchase, shipping and sale of LNG and re-gasified natural gas. Its remaining Transmission and Distribution businesses, principally Mahanagar Gas Limited in India, and certain corporate activities are included in the Other activities segment. The Upstream business segment covers exploration and production activities plus liquefaction operations associated with integrated LNG projects. The LNG Shipping & Marketing segment covers activities, including purchases, ships, markets and sells LNG, as well as the Company's interests and capacity in re-gasification facilities. more »

Price
1062p
Change
4.1%
Mkt Cap (£m)
n/a
P/E (fwd)
n/a
Yield (fwd)
n/a

President Energy PLC is engaged in the exploration for and the evaluation and production of oil and gas. Its segment includes the exploration and production of hydrocarbons. The Company has oil and gas production in two geographical markets: the United States and Argentina. It has exploration assets in Paraguay, Argentina, the United States and Australia. In Paraguay, it has interest in the Pirity Block, the Demattei Block and the Hernandarias Block. It holds working interest in the CNO-8 Puesto Guardian license, and over two exploration license areas (Matorras and Ocultar) surrounding Puesto Guardian in Salta Province, Argentina. It has interests in approximately two producing oil and gas fields in Louisiana, as operator of the East Lake Verret field and as a partner in the East White Lake field. It also has an interest PEL 82 in South Australia. more »

LSE Price
10.38p
Change
-1.2%
Mkt Cap (£m)
106
P/E (fwd)
21.7
Yield (fwd)
n/a



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About Malcolm Graham Wood

Malcolm Graham Wood

Malcolm has over 30 years' experience in the Oil & Gas sector and is a widely used media source. He often appears in print and on screen, and also writes an acclaimed daily blog read by much of the resources industry as well as investors both institutional and retail.Malcolm is a Founding Partner of HydroCarbon Capital, which provides independent advisory services to the Oil and Gas sector. He is a Director of the Maven Income and Growth VCT 4 PLC, a venture capital trust listed on the Premium segment of the main market of the London Stock Exchange.He started his career at Wood Mackenzie in 1979. He was an inaugural member of the No 1 Extel rated James Capel Oil & Gas team and also headed up corporate broking, acting for the Government in sales of British Gas, Britoil and other utilities. Subsequently he became Head of Equities and main board Director at Williams de Broe before moving to Teather & Greenwood. Following that, he ran his own consultancy for several years, acting for a number of quoted and private companies as well as being a board member and advisor. He has been a Director at Noble and then Westhouse Securities and has extensive contacts in the Oil & Gas sector globally. More recently Malcolm has been the lead advisor to an HSBC Zurich trust on oil, gas and energy investments as well as working with the oil team at VSA Capital.- See more at: http://www.malcysblog.com/about/#sthash.Jdn1d7dK.d... more »

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